Tottenham's next manager is likely to find his hands tied in the transfer market unless the team captures some silverware this season.

That was the stark warning from chairman Daniel Levy yesterday as he announced that Tottenham Hotspur plc made a &#xA3;7.1m loss before tax in the year to June 30.

That performance compared with a &#xA3;900,000 pre-tax profit in 2002, and the figures do not take into account the purchase of Helder Postiga, Bobby Zamora and Frederic Kanoute during the close season for a total of &#xA3;11.75m.

Spurs are searching for a long-term successor to Glenn Hoddle who was sacked last month and, unless fortunes improve under caretaker David Pleat, whoever comes in might find there are limited resources with which to try and strengthen the squad.

"Inevitably, trading will be influenced by the performance and success of the team over the remainder of the current season," said Levy in a statement. "During the close season, a number of changes were made to the playing staff, albeit against a backdrop of one of the most difficult player-trading environments in domestic and European football for some years.

"At the same time we released or sold a number of players, however, as a result of the prevailing market conditions the income from player sales was negligible compared to our overall spend on player purchases

"Notwithstanding our ambitions to succeed, the spending pattern this summer is not one that is sustainable over the longer term."

Levy again reiterated that the club would not be rushed into appointing a new manager, especially as the ship has been steadied under director of football Pleat. He said: "We now have the task of determining the long-term football managerial direction for the club, clearly a key issue and one which commands our fullest consideration. We have already determined that we will not be rushed into a decision."